USA threatens Panama:
China’s influence must be reduced immediately
Washington is putting its money where its mouth is and demanding an immediate reduction in China's influence on the operation of the Panama Canal - otherwise there could be dire consequences.
US Secretary of State Marco Rubio explained to President José Raúl Mulino during his first trip abroad in Panama that, according to head of state Donald Trump, China's influence is threatening the Panama Canal. This was announced by a spokesperson for the US State Department on Sunday. Trump is demanding an immediate change to the status quo. Otherwise the USA would take action.
The Panamanian government denies claims that it has ceded the operation of the canal to China. It insists on managing the internationally important waterway.
Focus on controlling the ports
The talks were primarily about controlling the ports on both sides of the important waterway - and not about sovereignty over the canal, explained Panama's President José Raúl Mulino after the meeting. The situation of the ports will be reviewed, said Mulino. He did not rule out a future involvement of US companies there.
Mulino described the meeting as positive. There is no doubt that the waterway is operated by Panama and will remain so, said Mulino. "I don't think there were any disagreements in this regard". A bilateral technical expert group would be set up to analyze the US concerns in more detail, particularly with regard to the "Chinese ports". Rubio was due to visit one of the canal's locks later.
Hong Kong company operates container terminals
The Hong Kong company Hutchison Ports PPC has been operating large container terminals on both sides of the canal since 1997. The company is not owned by the Chinese state, but by a wealthy Hong Kong family. However, there are fears that the government in Beijing could also expand its influence on ports and shipping routes via private Chinese companies.
Protests in Panama against US claims to the canal
During the talks at the seat of government, dozens of demonstrators protested on the streets of Panama City with Panamanian flags against the US government's claims to the Panama Canal. "This homeland is not for sale", they read on banners, as seen on television.
US President Donald Trump had recently made claims to the Panama Canal and said bluntly on several occasions that control of the important waterway should lie with the USA. He did not rule out military action. "I don't have the impression that there is a real threat at the moment," Mulino said after the talks with Rubio.
The 82-kilometre-long canal connects the Atlantic with the Pacific in Central America. Around three percent of global maritime trade passes through it. The waterway was built by the USA at the beginning of the 20th century. On December 31, 1999, the United States handed over administration of the canal to Panama. The transaction was negotiated by the recently deceased Democratic US President Jimmy Carter.
Panama tightened its migration policy under Mulino
According to Mulino, the issue of migration was also discussed with Rubio. Panama is considered a strategic player in Central America when it comes to curbing migration. Under Mulino, the number of migrants crossing the life-threatening jungle between Colombia and Panama towards the USA has decreased significantly. His government tightened border controls. In 2024, more than 300,000 people crossed the jungle. That is around 40 percent fewer than in the previous year.
After his visit to Panama, Rubio will continue on to Guatemala, El Salvador, Costa Rica and the Dominican Republic. The topic of migration will also play a central role there in view of the mass deportations announced by Trump.
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